Commvault Sets Fiscal Q4 Revenue Record
Fourth Quarter and Fiscal 2016 Highlights Include:
Fourth Quarter |
Fiscal 2016 |
|||
GAAP Results: |
||||
Revenues |
$159.6 million |
$595.1 million |
||
Income from Operations (EBIT) |
$9.3 million |
$2.0 million |
||
EBIT Margin |
5.8% |
0.3% |
||
Diluted Earnings Per Share |
$0.13 |
$0.00 |
||
Non-GAAP Results: |
||||
Income from Operations (EBIT) |
$26.2 million |
$67.3 million |
||
EBIT Margin |
16.4% |
11.3% |
||
Diluted Earnings Per Share |
$0.36 |
$0.91 |
N. Robert Hammer, Commvault's Chairman, President and CEO stated, "We delivered record quarterly revenue of
Total revenues for the fourth quarter of fiscal 2016 were
For the full fiscal year, total revenues were
On a GAAP basis, income from operations (EBIT) increased 95% to
On a GAAP basis, income from operations (EBIT) for the full fiscal year was
For the fourth quarter of fiscal 2016,
For the full fiscal year, Commvault reported a net income of $0.1 million. Non-GAAP net income for the full fiscal year decreased to $42.4 million, or $ 0.91 per diluted share, from $66.0 million, or $1.40 per diluted share, in fiscal 2015.
Operating cash flow totaled
A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
Recent Business Highlights:
- On
March 15, 2016 ,Commvault announced that it teamed up withForsythe Hosting Solutions and Hitachi Data Systems to provide a new, enterprise-class, hybrid cloud-capable backup and recovery as a service (BaaS) solution for enterprises looking to offload day-to-day backup and recovery responsibilities from in-house staff. The solution combinesCommvault's next-generation software and data platform,Hitachi Data Systems' software-defined infrastructure solutions, and Forsythe's hosting and managed services.
- On
March 9, 2016 ,Commvault announced that it launched Commvault Remote Managed Services to give customers the option of supporting and managingCommvault software environments throughCommvault's dedicated Remote Managed Services team. This offering is also available throughCommvault partners.
- On
March 9, 2016 ,Commvault also announced new innovations to the Commvault Data Platform to further provide customers with a holistic, highly-scalable, and cost-efficient means of storing, accessing and recovering business-critical data on-premise and in the cloud. The new innovations include extended hypervisor support, a scale-out storage option on commodity hardware, newly available of APIs that extend open access to the Commvault Data Platform, and expanded coverage and support for the Commvault IntelliSnap ecosystem.Commvault also announced technology enhancements to its market-leadingCommvault integrated solutions portfolio designed to help enterprises better support and manage 'big data' initiatives leveraging big data environments such as Hadoop, Greenplum and GPFS.
- On
March 1, 2016 , at the largest healthcare industry trade show - HIMMS,Commvault launched Commvault Clinical Archive to modernize the way healthcare organizations manage, migrate and share clinical data; the first solution that can address data management in both the clinical and business sides of healthcare on a single platform. FollowingCommvault's strategic investment in Laitek, a pioneer in rapid data migration and storage services for PACS replacements,Commvault developed a solution built on the Commvault Data Platform and Laitek's Semperdata™ platform. With the announcement of Commvault Clinical Archive,Commvault delivered on its commitment to launch industry-specific offerings, with healthcare as a first area of focus.
Use of Non-GAAP Financial Measures
All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided in Table IV included in this press release.
Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional FICA and related payroll tax expense incurred by
There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in
Non-GAAP net income and non-GAAP diluted EPS. Non-GAAP net income excludes noncash stock-based compensation, the additional FICA and related payroll tax expenses incurred by
Conference Call Information
About
Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting
©1999-2016
Table I |
|||||||||||||||
Commvault Systems, Inc. |
|||||||||||||||
Consolidated Statements of Income |
|||||||||||||||
(In thousands, except per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended March 31, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Revenues: |
|||||||||||||||
Software |
$ |
73,344 |
$ |
70,052 |
$ |
258,793 |
$ |
283,254 |
|||||||
Services |
86,221 |
80,683 |
336,333 |
324,289 |
|||||||||||
Total revenues |
159,565 |
150,735 |
595,126 |
607,543 |
|||||||||||
Cost of revenues: |
|||||||||||||||
Software |
790 |
608 |
2,385 |
2,442 |
|||||||||||
Services |
20,007 |
20,306 |
80,327 |
79,626 |
|||||||||||
Total cost of revenues |
20,797 |
20,914 |
82,712 |
82,068 |
|||||||||||
Gross margin |
138,768 |
129,821 |
512,414 |
525,475 |
|||||||||||
Operating expenses: |
|||||||||||||||
Sales and marketing |
89,652 |
86,047 |
352,669 |
335,980 |
|||||||||||
Research and development |
18,411 |
16,800 |
69,287 |
64,143 |
|||||||||||
General and administrative |
19,131 |
19,713 |
78,848 |
78,063 |
|||||||||||
Depreciation and amortization |
2,275 |
2,492 |
9,611 |
8,505 |
|||||||||||
Total operating expenses |
129,469 |
125,052 |
510,415 |
486,691 |
|||||||||||
Income from operations |
9,299 |
4,769 |
1,999 |
38,784 |
|||||||||||
Interest expense |
(241) |
(219) |
(933) |
(665) |
|||||||||||
Interest income |
275 |
181 |
862 |
773 |
|||||||||||
Equity in loss of affiliate |
(83) |
— |
(83) |
— |
|||||||||||
Income before income taxes |
9,250 |
4,731 |
1,845 |
38,892 |
|||||||||||
Income tax expense |
3,456 |
1,379 |
1,709 |
13,242 |
|||||||||||
Net income |
$ |
5,794 |
$ |
3,352 |
$ |
136 |
$ |
25,650 |
|||||||
Net income per common share: |
|||||||||||||||
Basic |
$ |
0.13 |
$ |
0.07 |
$ |
0.00 |
$ |
0.56 |
|||||||
Diluted |
$ |
0.13 |
$ |
0.07 |
$ |
0.00 |
$ |
0.54 |
|||||||
Weighted average common shares outstanding: |
|||||||||||||||
Basic |
44,615 |
45,017 |
45,159 |
45,464 |
|||||||||||
Diluted |
45,787 |
46,626 |
46,489 |
47,222 |
Table II |
||||||||
Commvault Systems, Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
March 31, |
March 31, |
|||||||
2016 |
2015 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
288,107 |
$ |
337,673 |
||||
Short-term investments |
99,072 |
49,936 |
||||||
Trade accounts receivable, net |
113,429 |
117,716 |
||||||
Prepaid expenses and other current assets |
16,769 |
20,084 |
||||||
Total current assets |
517,377 |
525,409 |
||||||
Deferred tax assets, net |
49,976 |
41,045 |
||||||
Property and equipment, net |
135,904 |
140,208 |
||||||
Equity method investment |
4,579 |
— |
||||||
Other assets |
6,737 |
6,804 |
||||||
Total assets |
$ |
714,573 |
$ |
713,466 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ |
309 |
$ |
860 |
||||
Accrued liabilities |
69,678 |
72,757 |
||||||
Deferred revenue |
194,977 |
184,312 |
||||||
Total current liabilities |
264,964 |
257,929 |
||||||
Deferred revenue, less current portion |
49,889 |
45,423 |
||||||
Other liabilities |
3,452 |
3,104 |
||||||
Total stockholders' equity |
396,268 |
407,010 |
||||||
Total liabilities and stockholders' equity |
$ |
714,573 |
$ |
713,466 |
Table III |
||||||||||||||||
Commvault Systems, Inc. |
||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||
(In thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended March 31, |
Year Ended March 31, |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
Cash flows from operating activities |
||||||||||||||||
Net income |
$ |
5,794 |
$ |
3,352 |
$ |
136 |
$ |
25,650 |
||||||||
Adjustments to reconcile net income to net cash provided by |
||||||||||||||||
Depreciation and amortization |
2,670 |
2,814 |
11,179 |
9,046 |
||||||||||||
Noncash stock-based compensation |
16,680 |
15,162 |
64,196 |
60,663 |
||||||||||||
Excess tax benefits from stock-based compensation |
(401) |
(836) |
(6,664) |
(5,057) |
||||||||||||
Deferred income taxes |
(1,452) |
2,269 |
(9,332) |
4,072 |
||||||||||||
Equity in loss of affiliate |
83 |
— |
83 |
— |
||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Trade accounts receivable |
1,693 |
(6,626) |
3,879 |
(6,581) |
||||||||||||
Prepaid expenses and other current assets |
569 |
(1,224) |
3,414 |
(11,907) |
||||||||||||
Other assets |
(174) |
651 |
(571) |
1,229 |
||||||||||||
Accounts payable |
171 |
(313) |
(454) |
(267) |
||||||||||||
Accrued liabilities |
(2,048) |
7,128 |
1,972 |
13,221 |
||||||||||||
Deferred revenue |
13,333 |
14,376 |
16,317 |
35,818 |
||||||||||||
Other liabilities |
261 |
(771) |
258 |
(2,040) |
||||||||||||
Net cash provided by operating activities |
37,179 |
35,982 |
84,413 |
123,847 |
||||||||||||
Cash flows from investing activities |
||||||||||||||||
Purchase of short-term investments |
(26,836) |
(12,475) |
(99,071) |
(68,933) |
||||||||||||
Proceeds from maturity of short-term investments |
12,474 |
12,495 |
49,935 |
43,973 |
||||||||||||
Purchase of equity method investment |
(86) |
— |
(4,662) |
— |
||||||||||||
Purchases for corporate campus headquarters |
— |
(8,989) |
(2,111) |
(59,297) |
||||||||||||
Purchase of property and equipment |
(1,273) |
(2,042) |
(6,280) |
(5,784) |
||||||||||||
Net cash used in investing activities |
(15,721) |
(11,011) |
(62,189) |
(90,041) |
||||||||||||
Cash flows from financing activities |
||||||||||||||||
Repurchase of common stock |
(56,897) |
— |
(91,477) |
(155,125) |
||||||||||||
Debt issuance costs |
— |
— |
— |
(1,262) |
||||||||||||
Proceeds from stock-based compensation plans |
5,065 |
5,633 |
14,843 |
17,690 |
||||||||||||
Excess tax benefits from stock-based compensation |
401 |
836 |
6,664 |
5,057 |
||||||||||||
Net cash provided by (used in) financing activities |
(51,431) |
6,469 |
(69,970) |
(133,640) |
||||||||||||
Effects of exchange rate — changes in cash |
1,684 |
(8,713) |
(1,820) |
(20,226) |
||||||||||||
Net increase (decrease) in cash and cash equivalents |
(28,289) |
22,727 |
(49,566) |
(120,060) |
||||||||||||
Cash and cash equivalents at beginning of period |
316,396 |
314,946 |
337,673 |
457,733 |
||||||||||||
Cash and cash equivalents at end of period |
$ |
288,107 |
$ |
337,673 |
$ |
288,107 |
$ |
337,673 |
Table IV |
||||||||||||||||
Commvault Systems, Inc. |
||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Year Ended March 31, |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
Non-GAAP financial measures and reconciliation: |
||||||||||||||||
GAAP income from operations |
$ |
9,299 |
$ |
4,769 |
$ |
1,999 |
$ |
38,784 |
||||||||
Noncash stock-based compensation (1) |
16,680 |
15,162 |
64,196 |
60,663 |
||||||||||||
FICA and related payroll tax expense on stock option exercises and |
261 |
368 |
1,151 |
1,143 |
||||||||||||
Adjustment to exclude expenses related to corporate campus |
— |
— |
— |
4,141 |
||||||||||||
Non-GAAP income from operations |
$ |
26,240 |
$ |
20,299 |
$ |
67,346 |
$ |
104,731 |
||||||||
GAAP net income |
$ |
5,794 |
$ |
3,352 |
$ |
136 |
$ |
25,650 |
||||||||
Noncash stock-based compensation (1) |
16,680 |
15,162 |
64,196 |
60,663 |
||||||||||||
FICA and related payroll tax expense on stock option exercises and |
261 |
368 |
1,151 |
1,143 |
||||||||||||
Adjustment to exclude expenses related to corporate campus |
— |
— |
— |
4,141 |
||||||||||||
Equity in loss of affiliate (4) |
83 |
— |
83 |
— |
||||||||||||
Non-GAAP provision for income taxes adjustment (5) |
(6,265) |
(6,118) |
(23,182) |
(25,549) |
||||||||||||
Non-GAAP net income |
$ |
16,553 |
$ |
12,764 |
$ |
42,384 |
$ |
66,048 |
||||||||
Diluted weighted average shares outstanding |
45,787 |
46,626 |
46,489 |
47,222 |
||||||||||||
Non-GAAP diluted net income per share |
$ |
0.36 |
$ |
0.27 |
$ |
0.91 |
$ |
1.40 |
Three Months Ended March 31, 2016 |
Year Ended |
|||||||||||
Sequential |
Year Over Year |
Year Over Year |
||||||||||
Non-GAAP software revenue reconciliation |
||||||||||||
GAAP software revenue |
$ |
73,344 |
$ |
73,344 |
$ |
258,793 |
||||||
Adjustment for currency impact |
231 |
956 |
12,359 |
|||||||||
Non-GAAP software revenue on a constant currency basis (6) |
$ |
73,575 |
$ |
74,300 |
$ |
271,152 |
||||||
Three months ended March 31, |
Year Ended |
|||||||||||
Sequential |
Year Over Year |
Year Over Year |
||||||||||
Non-GAAP services revenue reconciliation |
||||||||||||
GAAP services revenue |
$ |
86,221 |
$ |
86,221 |
$ |
336,333 |
||||||
Adjustment for currency impact |
451 |
1,759 |
16,320 |
|||||||||
Non-GAAP services revenue on a constant currency basis (6) |
$ |
86,672 |
$ |
87,980 |
$ |
352,653 |
||||||
Three Months Ended March 31, 2016 |
Year Ended |
|||||||||||
Sequential |
Year Over Year |
Year Over Year |
||||||||||
Non-GAAP total revenue reconciliation |
||||||||||||
GAAP total revenues |
$ |
159,565 |
$ |
159,565 |
$ |
595,126 |
||||||
Adjustment for currency impact |
682 |
2,715 |
28,679 |
|||||||||
Non-GAAP total revenues on a constant currency basis (6) |
$ |
160,247 |
$ |
162,280 |
$ |
623,805 |
Footnotes - Adjustments
(1) Represents noncash stock-based compensation charges associated with stock options, restricted stock units granted and our Employee Stock Purchase Plan. Those amounts are represented as follows:
Three Months Ended |
Year Ended March 31, |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
Cost of services revenue |
$ |
848 |
$ |
744 |
$ |
3,106 |
$ |
2,930 |
||||||||
Sales and marketing |
7,546 |
6,713 |
28,557 |
26,853 |
||||||||||||
Research and development |
1,834 |
1,624 |
6,722 |
5,908 |
||||||||||||
General and administrative |
6,452 |
6,081 |
25,811 |
24,972 |
||||||||||||
Stock-based compensation expense |
$ |
16,680 |
$ |
15,162 |
$ |
64,196 |
$ |
60,663 |
(2) Represents additional FICA and related payroll tax expenses incurred by
(3)
(4) Represents Commvault's share of loss from its investment in
(5) The provision for income taxes is adjusted to reflect
(6) Revenues on a constant currency basis are calculated using the average foreign exchange rates from a previous period and applying these rates to foreign-denominated revenues in the corresponding period during fiscal 2016. The difference between revenue calculated based on these foreign exchange rates and revenues calculated in accordance with GAAP is listed as adjustment for currency impact in the table above.
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SOURCE
Investor Relations Contact: Michael Picariello, Commvault, 732-728-5380, ir@commvault.com, or Media Relations Contact: Leo Tignini, Commvault, 732-728-5378, ltignini@commvault.com